Indian Government launches PM FME scheme to help micro food processing enterprises

#food #foodprocessing #government #india #microenterprises

The Indian government on Monday launched a Rs 10,000 crore scheme for micro enterprises which offers 50% subsidy for storage and transportation to prevent distress sale by farmers.

The scheme, called Pradhan Mantri Formalisation of Micro Food Enterprises (PM FME), aims to bring in new technology, apart from affordable credit to help small entrepreneurs penetrate new markets.

The scheme will be implemented for five years until 2024-25. It will generate investment of Rs 35,000 core, generate 900,000 jobs and help 800,000 units.

Under the PM FME scheme, micro enterprises will get 35% subsidy on project cost, with a ceiling of Rs 10 lakh. The beneficiaries will have to contribute at least 10% of the project cost while the balance will come from loans. Nearly 200,000 micro enterprises will get credit-linked subsidy support.

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Govt launches PM FME scheme to help micro food processing enterprises

New Delhi: The government on Monday launched a Rs 10,000 crore scheme for micro enterprises which offers 50% subsidy for storage and transportation to prevent distress sale by farmers.

Inc42: Shared Mobility Startup Royal Brothers Adds Long-Term Subscriptions To Hourly Rentals

#sharedmobility #micromobility #ridesharing #subscriptionmodel #intercity #bikerental #startupindia #startupstrategy #postcovidworld

The shared mobility space which finally resumed its operations recently is going through a complete overhaul. Considering that consumers will be wary of sharing vehicles with others, in recent weeks, many bike rental and two-wheeler ride-sharing platforms have pivoted their offerings. Bengaluru-based Royal Brothers, a two-wheeler rental startup, revised its hourly rental model to add monthly subscriptions.

Co-founded by the professor-student duo of Manjunath T N and Abhishek Chandrashekar in July 2015, Royal Brothers claims to be South India's first RTO authorised self-ride bike rental platform. It has since established presence across eight states and 25 cities and claims to be the first player in the category to start the subscription model. The new monthly subscription model is meant to counter the health risks posed by public transports, while also helping the customers practise social distancing. The subscription model has been adopted by a slew of bike-sharing companies as the market adapts to the new reality post the lockdown.

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Shared Mobility Startup Royal Brothers Adds Long-Term Subscriptions To Hourly Rentals

From airlines to trains, to even local transportation — everything came to a standstill as India tried to flatten the coronavirus infection curve. But economies have to function and this would need people to step out of their homes, and so with the third phase of the lockdown in early May, the Indian government allowed mobility startups to resume operations with extra protection and safety measures.

Startup Ideas:- The gig economy of street vendors and hawkers throws opportunities for FinTech startups for a win-win situation

According to the Ministry of Housing and Urban Poverty Alleviation, there are 10 million street vendors in India, with Mumbai accounting for 250,000, Delhi has 450,000, Kolkata, more than 150,000, and Ahmedabad, 100,000. Most of them are immigrants or laid-off workers, work for an average 10–12 hours a day, and remain impoverished. In India, street vending makes up 14% of total (non-agricultural) urban informal employment.

These street vendors or hawkers require daily finance, which is now provided by nearby private money lenders at at an exorbitantly high interest rates as high as 10% daily. For example, a hawker requires Rs 1000 for the day, he gets Rs 900 in the morning after deducting that day’s interest. In the evening, he has to deposit Rs 1000 with the lender. This routine repeats everyday. There is also a rent for trolly used for business as well.

Covid times impacted these communities very hard. Govt announced a package where these small vendors will get a working capital loan of Rs 10000 with a moratorium of 1 yr.

So, there is a tremendous scope and market opportunity for startups to provide FinTech solutions to these micro retailers so that it is a win-win situation for both.

All the best!